Question for Pattern Day Traders

I

Illini Trader

I have not day-traded stocks for several years and have a few questions for those of you that are active day-traders.

1. Are zero commissions really zero? I looked on IB's webpage and they mention a Transaction Fee on Aggregate Sales and a Finra Trading Activity Fee all the while stating that commissions are zero.

2. Are you having any problems shorting stocks. I am particularly interested in Apple. Is there an adequate supply available that small traders (under 500 shares) can get filled. The last time I was active I had some difficulty shorting.

3. Is there any penalty or problem in trading odd lots: (25 shares or 230 shares, etc)

4. One more question: Is anyone using Sierra Charts to trade stocks with IB. At the present time it appears that this is the only potential way to use SC for anything other than futures.
 
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There is probably some kind of fee but unless you are doing a hundred trades a day it really should not matter much.

You will have no trouble doing just about anything with Apple. Big time volume.

Odd lots. If you can pay you can play. Note - In very fast moving markets, regardless of type of size, you may only get a partial fill if placing a limit order of some kind.

None of the above really apply to pattern day trading.

Only way to real know is do it and see.
 
its funny if you're trading spy etf the money you pay in sec and finra fee
is about the same as the average futures contract all in commission and fee's.

1 ES future = 500 shares spy

500 x 320.00 = 160,000 x .0000221 = 3.54
500 x .000119 = .06
Total 3.60

Average all in round trip ES - 3.50 - 4.00

Crazy.


Futures bonus: tax treatment and insane leverage.

SPY bonus: penny spread, small traders can actually trade
properly with small size
 
VEGASDESERT said:
its funny if you're trading spy etf the money you pay in sec and finra fee
is about the same as the average futures contract all in commission and fee's.

1 ES future = 500 shares spy

500 x 320.00 = 160,000 x .0000221 = 3.54
500 x .000119 = .06
Total 3.60

Average all in round trip ES - 3.50 - 4.00

Crazy.


Futures bonus: tax treatment and insane leverage.

SPY bonus: penny spread, small traders can actually trade
properly with small size
More...

I guess what I am really asking on this point is what traders are really paying for a round trip of 100 shares of AAPL.
 
JesseJamesFinn1 said:
I play AAPL everyday using E-Trade or Schwab and three IBKR pro accounts. What are you asking? I had no problem shorting AAPL at it's all time high getting a fair price. With super liquid stocks you will not have problems.
More...

I am asking because the last time I traded as a PDT I could not short SPY and it is very liquid. Thanks for the reply as I wanted info from people who are actually trading it.
 
Another question for Jesse. When I was PDT I had to pay an extra fee for market orders because I was taking liquidity rather than supplying it with a limit order. Is that still the case for marker orders?
 
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